Investment funds buy $18.193 billion 10-year note in November - U.S. Treasury

BY Reuters | TREASURY | 11/22/21 03:10 PM EST

REUTERS - Large investment managers bought $18.193 billion at a 10-year note auction held in November, compared with the $19.895 billion they purchased the previous month, data from the U.S. Treasury Department released on Monday showed.

Overseas investors, another major group of holders of U.S. government debt, bought $14.134 billion of the latest 10-year supply, compared with $13.339 billion they purchased the previous month, according to the Treasury Department's auction allotment data.

The Treasury also sold some of $62 billion of 10-year notes earlier this month to banks, pension funds and Wall Street bond dealers.

At other auctions held the same week as the 10-year auction, large investment managers bought $28.448 billion of 3-year notes, compared with the $25.331 billion they purchased the previous month. They bought $14.199 billion in 30-year bonds versus $13.730 billion the prior month.

Overseas investors bought $11.588 billion of the latest 3-year supply, compared with $9.183 billion they purchased the previous month.

They bought $3.683 billion of 30-year bonds versus $6.649 billion the prior month.

The Treasury offered $88 billion in 3-year notes and $39 billion in 30-year bonds.

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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